Semtech (NASDAQ:SMTC) Shares Gap Up - What's Next?

Key Points

• Shares gapped up premarket — opening at $78.02 vs a $72.16 close — but were last near $73.63 and trading down about 2.7%, showing intraday volatility.
• Wall Street sentiment is mostly positive with 14 Buys, 1 Hold and 1 Sell and a consensus rating of “Moderate Buy” and an average price target of $93.14, after several firms raised targets (e.g., Morgan Stanley, Craig Hallum, Piper Sandler).
• Semtech slightly beat quarterly EPS and revenue (EPS $0.44 vs $0.43; revenue $274.4M, +9.3% YoY) but has a negative net margin and analysts forecast -0.02 EPS for the year, while insiders have been net sellers recently (COO and CFO sold shares; insiders own 0.48%).

Semtech Corporation (NASDAQ:SMTC - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $72.16, but opened at $78.02. Semtech shares last traded at $73.6340, with a volume of 926,170 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on SMTC. Morgan Stanley raised their price objective on shares of Semtech from $75.00 to $85.00 and gave the stock an "equal weight" rating in a research note on Monday, March 16th. Craig Hallum increased their target price on Semtech from $80.00 to $105.00 and gave the company a "buy" rating in a report on Tuesday, March 17th. Piper Sandler reissued an "overweight" rating and set a $95.00 price target (up from $70.00) on shares of Semtech in a research report on Thursday, December 11th. Wall Street Zen cut Semtech from a "strong-buy" rating to a "buy" rating in a report on Monday, January 26th. Finally, Weiss Ratings downgraded Semtech from a "hold (c-)" rating to a "sell (d-)" rating in a research report on Tuesday, March 24th. Fourteen analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Semtech presently has a consensus rating of "Moderate Buy" and an average price target of $93.14.

Semtech Trading Down 2.7%

The business has a 50 day simple moving average of $83.92 and a two-hundred day simple moving average of $75.13. The company has a current ratio of 2.37, a quick ratio of 1.66 and a debt-to-equity ratio of 0.89. The company has a market cap of $6.53 billion, a PE ratio of -159.57 and a beta of 1.99.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its quarterly earnings data on Monday, March 16th. The semiconductor company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.43 by $0.01. Semtech had a positive return on equity of 18.09% and a negative net margin of 3.86%.The business had revenue of $274.40 million during the quarter, compared to the consensus estimate of $273.14 million. During the same quarter in the previous year, the business earned $0.40 earnings per share. The business's revenue for the quarter was up 9.3% on a year-over-year basis. On average, analysts forecast that Semtech Corporation will post -0.02 EPS for the current fiscal year.

Insider Buying and Selling at Semtech

In related news, COO Asaf Silberstein sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $92.00, for a total value of $920,000.00. Following the sale, the chief operating officer directly owned 68,496 shares of the company's stock, valued at approximately $6,301,632. This trade represents a 12.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Mark Lin sold 9,186 shares of the business's stock in a transaction that occurred on Tuesday, March 24th. The shares were sold at an average price of $75.05, for a total transaction of $689,409.30. Following the completion of the sale, the chief financial officer owned 32,710 shares of the company's stock, valued at approximately $2,454,885.50. The trade was a 21.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 49,377 shares of company stock worth $4,055,452. 0.48% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in SMTC. Think Investments LP purchased a new stake in Semtech during the third quarter valued at about $58,618,000. Ameriprise Financial Inc. lifted its stake in shares of Semtech by 10.3% in the 2nd quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company's stock valued at $321,040,000 after purchasing an additional 666,456 shares in the last quarter. Atreides Management LP purchased a new stake in shares of Semtech during the 2nd quarter worth about $29,880,000. Westfield Capital Management Co. LP grew its holdings in shares of Semtech by 23.0% during the 3rd quarter. Westfield Capital Management Co. LP now owns 3,380,373 shares of the semiconductor company's stock worth $241,528,000 after purchasing an additional 633,113 shares during the period. Finally, Hood River Capital Management LLC increased its position in Semtech by 36.0% during the 2nd quarter. Hood River Capital Management LLC now owns 2,244,631 shares of the semiconductor company's stock worth $101,323,000 after purchasing an additional 594,529 shares in the last quarter.

Semtech Company Profile

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company's products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech's portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.

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